AM Best has affirmed the Financial Strength Rating and the Long-Term Issuer Credit Ratings of Assicurazioni Generali S.p.A.
06 January 2021
AM Best has affirmed the Financial Strength Rating and the Long-Term Issuer Credit Ratings of Assicurazioni Generali S.p.A. and its main rated subsidiaries including Generali Česká pojišťovna.
Rating agency AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of Assicurazioni Generali S.p.A. and its main rated subsidiaries including Generali Česká pojišťovna. The outlook of both ratings is stable.
The ratings reflect assessment of four main building blocks: balance sheet strength categorised as strong, strong operating performance, business profile classified as very favourable and appropriate enterprise risk management. In all these blocks, Generali has defended last year’s assessment.
Generali’s balance sheet strength is underpinned by risk-adjusted capitalization that is considered to be at the strongest level. The group had a regulatory solvency ratio of 203 % as at 30th September 2020 (YE 2019: 224 %).
Strong operating performance is driven by solid technical performance. Technical results are underpinned by the group’s non-life business, which produced average combined ratios of 92.9 % over the five-year period ending in 2019, as calculated by AM Best. While the COVID-19 pandemic impacted Generali’s profitability, results are expected to revert to historic norms. Losses related to the pandemic were primarily driven by non-operating results, mainly on investments.
The group’s very favourable business profile is supported by leading and defensible positions in each of its core markets. The group has a solid franchise, reinforced by its excellent access to markets through its strong proprietary network and its multichannel distribution strategy. The group has continued to expand its asset management business. The business provides the group with a diversified source of revenue.